WEST RAND TAILINGS

RETREATMENT PROJECT Unlocking value and

creating sustainability

Grant Stuart

Vice President: Projects

28 July 2016

Disclaimer

The information in this presentation may include forward-looking statements, which are based on current expectations and

projections about future events. These statements may include, without limitation, any statements preceded by, followed by or

including words such as “target,” “expect,” “may,” “anticipate,” “estimate,” “will,” and other words and terms of similar

meaning or the negative thereof. These forward-looking statements, as well as those included in any other material discussed

at the meeting, are subject to risks, uncertainties and assumptions, including, among other things, the development of

Sibanye’s business, general economic conditions and actions of regulators. In light of these risks, uncertainties and

assumptions, the events in the forward-looking statements may not occur. No representation or warranty is made that any

forward-looking statement will come to pass and no reliance should be placed on any forward-looking statement. No one

undertakes to publicly update or revise any such forward-looking statement.

2

WRTRP: introduction

• The West Rand Tailings Retreatment Project (WRTRP) is a large-scale, long-life

surface tailings retreatment opportunity, the economic viability of which was

secured through the acquisition of the Cooke assets by Sibanye in 2014

• The WRTRP will turn to account sizeable surface gold and uranium resources

at Sibanye's Kloof, Driefontein and Cooke operations

– realising significant long-term value for shareholders

– benefitting all stakeholders by creating sustainable employment, facilitating community development, contributing to the revenue

and delivering environmental benefits

• The project’s inherent flexibility and the extensive, detailed technical studies

undertaken, allow for phased development and staging of capital, substantially

reducing project risk

• Process design has been historically proven at similar, existing operations

– incorporating modern technology and world-leading environmental

standards

• Possible use of existing surface processing infrastructure provides

additional flexibility

3Creating superior value for all our stakeholders

Project history

Cooke surface resources were consolidated within Sibanye in 2014, creating the

necessary critical mass and scale

4WRTRP has an eight-year history of development with ~R800m spent on technical studies

2009 2012 2013 20142007

Harmony Rand Uranium Gold One

Gold Fields

Sibanye Gold

2015

West Wits

DFS

West Wits

PFS

Mega

Tailings

Gold only

study

WRTRP

FEED

WRTRP

DFS

WRTRP

PFS

WRTRP

concept

Cooke Uranium Project

Review

Cooke Uranium Project

FEED

Cooke Uranium Project

DFS

Cooke Uranium Project

PFS

Background

Independently, the Sibanye (ex. Gold Fields) and Cooke surface projects were not

economically or environmentally viable

5Tailings retreatment projects have complementary synergies

Gold Fields (West Wits Project)* Cooke Uranium Project

Drivers • Gold recovery

• Environmental remediation

Drivers • Uranium recovery

• Uranium

consolidation/growth

Characteristics • Sizable, high grade gold

resources

• Uranium and sulphuric acid

by-products

Characteristics • High grade uranium

resources

• Gold and sulphuric acid

by-products

Pros • Scale and gold grade

• Existing gold processing

infrastructure

Pros • Scale and uranium grade

• Uranium processing

infrastructure at Cooke 4

Cons • Removal of uranium and

sulphur from final tailings

• Not economic due to low

uranium grades

Cons • Limited life due to lower

resource volumes

*Excluding South Deep

Combined project: synergies

Integrating projects and leveraging synergies

• High-grade Driefontein surface facilities deliver early cash flows

• High uranium grade and size of Cooke resources underpin value and justify

construction of uranium processing plant

• Scale of combined West Wits surface resources can support a long

life-annuity operation

• Phased development of central, high-volume processing facilities and single

deposition site reduce risk

• Existing gold and uranium processing infrastructure can be used

when appropriate

• Central positioning of metallurgical processing facility and deposition site

relative to resources is cost effective

• Possible consolidation of district resources in the future – improving project

Return On Invested Capital (ROIC) and providing regional environmental solution

6Complementary assets reduce execution risk and unlock value

Social and environmental benefits

WRTRP – leveraged organic growth to deliver economic value with concurrent

rehabilitation and provide sustainable social and environmental benefits

• Removal and remediation of existing tailings deposits currently located on

sensitive dolomitic aquifers reduces future environmental liability and risk

– single 1,350ha central tailings facility to be constructed away from

sensitive dolomitic areas on less permeable substrate

– removal of tailings facilities will reduce health risks for surrounding

communities from possible exposure to dust

• Removal of sulphides by sulphuric acid plant to reduce acid mine drainage risk

• Currently impacted mine water to be re-used in the hydraulic mining process

• Excess water to be treated to potable drinking water standards

7Early rehabilitation and closure reduces future environmental liabilities

WRTRP infrastructure plan

8200km of pipeline infrastructure

Central processing plant (CPP) location

9Modular design of CPP facilitates phased expansion

Regional tailings storage facility (RTSF) layout

10RTSF to be developed in phases enabling phasing of capital

Full project implementation: conceptual profile

Plant modules developed in 1Mtpm

stages to treat Driefontein, Kloof

and Cooke clusters simultaneously

• Production of 3.5Moz of gold

and 48Mlbs of uranium

over LoM

• Peak production:

– Gold: 210koz

– Uranium: 2.5Mlbs

• Deposition site: capable of

receiving peak throughput

of up to 4Mtpm

11Staged full approach consumes Sibanye’s own resources in 26 years

-

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

-

50 000

100 000

150 000

200 000

250 000

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

Gold (LHS) Uranium (RHS)

Stage 11.4Mtpm

113koz Au

2mlbs U3O8

Capital: R9.6bn

Stage 33.4Mtpm

182koz Au

2.3mlbs U3O8

Capital: R1bn

Stage 22.4Mtpm

160koz Au

2.3mlbs U3O8

Capital: R2bn

oz lbs

0.000

0.020

0.040

0.060

0.080

0.100

0.120

0.140

0.160

0.180

0.200

0.220

Resource portfolio

Uranium grade (x axis), gold grade (y axis), tonnage (bubble)

Average grade

Lower grade

Four 'anchor resources'

(30% of the Sibanye resource)

fund initial capital

High grade

Four “anchor” resources underpin project value

12Capital recovered during phase one; potential 35-year annuity income thereafter

Cooke surface assets

Driefontein and Kloof surface assets

Bubble size – tonnage (30Mt)

Cooke to ‘cover' uranium capital

Driefontein to ‘cover' gold capital

Balance of resource provides sustainability and scale; annuity

income for 35+ years possible

Pay limit dependent on metallurgical recoveries per dam

Ura

niu

m g

rad

e (

kg

/t)

Gold grade (g/t)

WRTRP Preferred integrated gold

and uranium approach

Integrated approach

Total Sibanye resource of 715Mt includes ~6.5Moz Au and ~99Mlb U3O8

• “Get into business” approach focusing on four anchor resources reduces

capital and risk:

– 210Mt resource containing 2.4Moz gold and 53Mlbs uranium

– Cooke Dump (CD) reclaimed simultaneously with Driefontein 3 and 5

facilities (DRI3 and DRI5) and Cooke 4 facility (C4S) over 18 years

• Monthly throughput of 1Mt from DRI3, DRI 5 and C4S and 400,00t from CD

• Annual steady state gold production: 100,000oz potentially peaking at

115,000oz

• Annual steady state uranium production: 2.2Mlbs potentially peaking at 2.5Mlbs

• Total expected production of 1.3Moz of gold and 33.4Mlbs of uranium

over 18 years

• Combined expected capital investment of ~R9.6bn over three years

14A smart execution “get-into-business” option utilising 37% of the gold resource

Note: DRI3, DRI5 - Driefontein 3/5 Dams, C4S – Cooke 4 South Dam and CD - Cooke Tailings Dams

Integrated approach (cont’d)

• R9.6bn initial regional financial investment

• Treat DRI3, DRI5 and C4S TSFs at 1Mtpm

through the Central Processing Plant (CPP)

– 50kt/m of high-grade gold and uranium

concentrate from flotation of DRI3, DRI5

and C4S treated at CPP

• Treat uranium rich CD at 400ktpm

• Deposition onto RTSF at 1.4Mtpm

15Significant social and environmental investment into declining West Rand

Reclamation line

Deposition line

Surface plants

Sand dumps

Surface rock dumps

Historical tailings

Pits (old open cast workings

Current deposition facility

Regional tailings facility (RTSF)

Sibanye lease area

Neighbouring mines

Uranium

Cooke Dump

(CPP)

(Gold flotation and processing plant)

RTSF

Cooke 4 South TSFs

Note: DRI3, DRI5 - Driefontein 3/5 Dams, C4S – Cooke 4 South Dam and CD - Cooke Tailings Dams

Driefontein 3/5

TSFs

Driefontein 3/5

TSFs

Integrated approach (cont’d)

16Plug and play optionality; option to delay uranium integration

Note: DRI3, DRI5 - Driefontein 3/5 Dams, C4S – Cooke 4 South Dam and CD - Cooke Tailings Dams

~18ktpm (Recleaner conc)

1,000ktpm DRI3, DRI5 and C4S

Sulphide flotation

Cooke 4 U and Au plant

Oxide flotation

New goldplant

150ktpm

Sulphide flotation

Roaster and acid

plant Acid storage

Uranium plant

Gold design

RTSF

50ktpm

Rougher/ cleaner

Rougher tail

450ktpm

Polish /

fine

grindCleaner

tails

400ktpm Cooke TSF

Uranium design

Production profile – integrated approach

• Additional Sibanye-owned resources offer further life and leverage

annuity potential

• Initial investment of R9.6bn (2017-2019) with first production expected in 2020

17Anchor resources cover the capital

~210Mt containing 2.4Moz Au and ~54Mlbs U3O8

-

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

-

50 000

100 000

150 000

200 000

250 000

300 000

350 000

Driefontein 3,5, Old 4 Dam and Cooke Dam (Anchor Resources)

Gold Production LHS (Oz) Acid Production LHS (t) Uranium Production RHS (lbs)

Go

ld p

rod

ucti

on

(o

z)

Acid

pro

du

cti

on

(t)

Ura

niu

m P

rod

ucti

on

(lb

s)

Costs – integrated approach

18Allocation of indirect capital costs offers funding flexibility

Opex Gold Uranium Sulphuric acid

Production over lifeMoz 1.32* Mlbs 33.37* Mt 5.07*

kg 41,057

CapexRbn 4.02 Rbn 3.34 Rbn 2.20

$m 277 $m 230 $m 152

OpexRm 5.10 Rm 13.16 Rm 2.35

$m 351 $m 907 $m 162

Metrics

CapexR/kg 97,962 R/lb 100 R/t 435

US$/oz 210 US$/lb 7 US$/t 30

OpexR/kg 124,121 R/lb 394 R/t 463

US$/oz 266 US$/lb 27 US$/t 32

TotalR/kg 222,084 R/lb 494 R/t 898

US$/oz 476 US$/lb 34 US$/t 62

* Shared capex (indirect costs) allocated to gold, uranium and acid modules

Exchange Rate: ZAR14.5: 1 US$

Funding solution – integrated approach

• Potential funding structure: 'Uranium off-take' solution with equity investor (EI)

and 'build, own and operate' model for sulphuric acid with EPCM and third

party distributor (TPD)

19Execution option dependent on final funding solution

Cooke dump

Driefontein 3

RTSF

Uranium plant Gold plant

Sulphuric acid plant

Central Process Plant

R3.3bn* R4.02bn*

R2.2bn*

1.3Moz

5.1Mt

33.7Mlbs

EI funding

EPCM and TPD

Au

conc

Au

Calcine

30%

Sulphide

Sulphur

* Shared capex (indirect costs) allocated to gold, uranium and acid modules

Sensitivity of financed integrated approach

“Get into business” design for 37% of the Sibanye-owned gold resource is

significantly enhanced if uranium and sulphuric acid plants are funded by

third parties

20Securing financing significantly improves financial returns and viability of project

• Project valuation considers

standalone project NPV;

upside through annuity

resource, tax shields and

debt funding

• NPV of R4bn and IRR of 33%

at a gold price of

R600,000/kg with funding

solution in place

Assuming Uranium price of US$45/lb from 2021 exchange rate: ZAR14.5: 1 US$

0%

5%

10%

15%

20%

25%

30%

35%

40%

-

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

NPV

(R

000)

NPV and IRR sensitivity to gold price with

funding solution in place

NPV (LHS) IRR (RHS)

IRR

%

R/kg

WRTRP Delayed uranium

capital execution

Delayed uranium capital execution

Total Sibanye resource of 715Mt includes ~6.5Moz Au and ~99Mlb U3O8

• “Get into business” approach focusing on three anchor resources reduces

capital and risk:

– 124Mt resource containing 1.6Moz gold and 18.7Mlbs uranium

– DRI3 reclaimed first, followed by DRI5 and C4S over 11 years

• Throughput of 1Mtpm from DRI3, DRI 5 and C4S and delayed 400,00tpm from CD

• Annual steady state gold production: 90,000oz

• Annual steady state uranium production: 300,000lbs ramping up to 1Mlbs

with C4S

• Total expected production of 860,000oz of gold and 6.1Mlbs of uranium

over 11 years

• Combined capital investment of ~R4.6bn expected over two-year period

– an expected delay to uranium and acid plant capital investment for 8 years

until the life of the Cooke 4 North tailings dam reaches final height

22A gold focused 'get-into-business' strategy utilising 17% of the resource

Note: DRI3, DRI5 - Driefontein 3/5 Dams, C4S – Cooke 4 South Dam and CD - Cooke Tailings Dams

Delayed uranium capital execution (cont’d)

Prioritise the high-gold Driefontein

complex

• Driefontein 3 and 5 TSFs and C4S

reclaimed @ 1Mtpm

• 124Mt Sibanye resource contains 1.6Moz gold and

18.7Mlbs uranium

• Delay uranium and acid plant

capital

• Opportunity to use existing

surface infrastructure:

– 180ktpm recently upgraded

CIL plant currently treating

surface rock material

– Cooke 4 metallurgical plant

23Phased uranium development and staging of capital

950ktpm

to RTSF

50ktpm

Sulphide

flotation

Fine grind

Oxide

flotation

New Au

plant CPP

150ktpm

Gold execution strategy

1,000ktpm

DRI3, DRI5 and C4S

50ktpm

to Ezulwini TSF

Cooke 4

U and Au plantDP2/3 Au plant

Delayed uranium capital execution (cont’d)

24Delay of uranium execution is expected to reduce the execution timeframe to 24 months

• R4.6bn initial regional financial investment

• Treat DRI3, DRI5 and C4S TSFs at 1Mt/m

through the CPP

– 50ktpm of high grade gold and

uranium concentrate from flotation of

DRI3, DRI5 and C4S treated at CPP

• Deposition onto RTSF at 950ktpm and

50ktpm onto active facility Cooke 4 Plant

(Integrated metallurgical complex)Uranium

Central Gold

Plant

Driefontein 3/5

TSFs

Reclamation line

Deposition line

Surface plants

Sand dumps

Surface rock dumps

Historical tailings

Pits (old open cast workings

Current deposition facility

Regional tailings facility

Sibanye lease area

Neighbouring minesRTSF

Note: DRI3, DRI5 - Driefontein 3/5 Dams, C4S - Cooke 4 South Dam and CD - Cooke Tailings Dams

C4S

Driefontein 3/5

TSFs

Cost of sales – delayed uranium capital execution

25Allocation of indirect capital costs offers funding flexibility

Opex Gold Uranium

Production over lifekoz 860 Mlbs 6.1

kg 26,749

CapexRbn 4.43* Rbn 116*

$m 306 $m 8

OpexRm 5.07 Rm 1.64

$m 349 $m 113

Metrics

CapexR/kg 165,610 R/lb 19

US$/oz 355 US$/oz 1

OpexR/kg 189,353 R/lb 269

US$/oz 406 US$/oz 19

TotalR/kg 354,963 R/lb 288

US$/oz 761 US$/lb 20

* Shared capex (indirect costs) allocated to gold, uranium and acid modules

Exchange Rate: ZAR14.5: 1 US$

Delayed uranium capital execution: production profile

• Additional Sibanye-owned annuity offers additional life

• Initial investment of R4.6bn (2017-2018) with expected production in 2019

26“Anchor resources” cover the capital

-

200 000

400 000

600 000

800 000

1 000 000

1 200 000

-

20 000

40 000

60 000

80 000

100 000

120 000

Driefontein 3,5, Old 4 Dam (Anchor Resources)

Gold Production LHS (Oz) Uranium Production RHS (lbs)

Go

ld P

rodu

ction

(o

z)

Ura

niu

m P

rodu

ction

(lb

s)

Conclusion

• Combined, the Cooke and Sibanye surface resources and infrastructure

enhance the economic viability and development of long-life,

environmentally-beneficial surface retreatment project

• Low technical risk project with flexible design and implementation routes that

provide valuable optionality pending commodity prices and funding solution

– potential to phase uranium and acid plant later

• First phase of integrated approach covers 75% of total project capital

requirement (30% of the resource)

• Project valuation considers standalone project; upside through potential of

annuity resources, tax shields and debt funding

• Expected name plate production of 100,000oz gold and 2Mlbs uranium annually

by the end of Q1 2020

• Continuation of front-end engineering design (FEED) while permitting and

funding strategy continue

– permits including approval from the NNR, DMR and DWS expected by Q3

2016

– investigating alternative funding options that have the potential to enhance

equity valuations

27Creating superior value for all stakeholders